2020 has been a huge year for the crypto space. The year saw the market reach 2017 Bitcoin price levels and it seems like we are in the beginning of the new bull cycle. At the same time, a parallel economic system, called Decentralised Finance or DeFi, has seen tremendous growth, despite still being in its infancy phase. Having enjoyed significant hype for years, Decentralised Exchanges (DEXs) finally met and even exceeded the heavy expectations the crypto community had placed on them. DeFi saw trading volumes balloon and new investment mechanisms were popularised.
Blockchain’s use cases nevertheless extend beyond the finance industry. The more people are becoming familiar with this technology, they are embracing it and leveraging its benefits.
In the gaming industry, the decentralized and secure properties of blockchain assets can make it a popular tool as game economies and the ever-more growing asset ecosystem become more complicated. Blockchain can enhance the user experience by enabling true, secure and decentralised ownership of digital assets. It can also enable the creation of new economic paradigms and gaming models.
As the free-to-play model dominated the gaming industry in recent years, the value and volume of micro-transactions has seen an equal rise, as game developers had an incentive to maximise the amount of digital assets that exist in-game. While free-to-play games are accessible to everyone, the in game economy is problematic as a small minority of players account for the majority of purchases. This, over time, essentially transforms free to play games into pay-to-win, with a narrow focus on a small base of players who buy things. This creates a sense of imbalance between players for whom free-2-play games may be more accessible but less enjoyable over time. In addition, despite the effort and money gamers may spend on acquiring digital assets, these assets in the end do not have ownership of them as game developers are able to change or remove these assets at their discretion.
The possibilities offered by blockchain gaming come bearing significant hope in solving the problems that have accompanied the currently prevalent free-to-play model. Blockchain-enabled developments can transfer the ownership of digital assets to the players. Smart contracts, which are lines of code stored on a blockchain that can automatically execute when their predetermined conditions are met, allow assets to be automatically transferred between players. The immutable nature of blockchain data means that with smart contracts, developers can’t alter or remove the ownership of these assets.
Besides this disrupting potential many also believe that blockchain gaming is the key to crypto mass adoption and for gaming dreams like ‘Ready Player One’.
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